Options Premium traps

Trading
1

Anybody have experienced the premium sudden falls immediately after taking entry in an Option…? Won’t it feels like personal target because before our entry, the premium will be keeps trading normally… But as soon as our entry, the premiums starts to behave abnormally & the price will never reach back to our entry price even the market moves in our favor…

Maximum it will reach near to our entry price even the market starts to move in our favor. But it will never cross above our entry price so that ultimately we have to exit the trade taking loss.

Out of 10, 7 trades will happen like this.

2

Jane street bro :joy:

1 Like
3

It’s because your trades are predictable by Jane street et all. The pump is orchestrated by them in options, then the underlying and they dump the options to you. They know what to draw on the chart, which makes you/most retailers buy/sell.

4

Yes You are right , now the new issue is that , say if you place a Spread order ( Buy Higher strike , sell 2strike below) if you execute it , The lower strike premium is more then the Higher strike , its crazy thing, may be new type of Algo’s is doing it :thinking: